Car Finance - Complaint

kickgirl

HI Guys
Wondered if you could give some advice. In March this year I part exchanged my car with a registered dealer for a very well known car company. They were supposed to cancel the finance on the car by paying off the balance to the finance company. I then started a new finance deal on the new car.This is my 3rd car from this manufacturer.

In May I applied for a mortgage which was rejected. After looking at my credit report it transpired that they HAD NOT cancelled the finance and that I had in fact been paying for both cars for 2 months.The finance company said they couldn't cancel the finance agreement until the funds were settled by the dealer. The mortgage was rejected because what I told them about my outgoings didn't match what I had outstanding on paper.

After a lot of pushing from me the dealer eventually paid off the balance and the credit agreement was removed from my file about 2 weeks later.Too late to salvage the mortgage application.

I know this was why I was rejected for the mortgage because a subsequent mortgage application to a different lender was accepted after the agreement was cancelled.

I am not happy at all with the way I was dealt with. They were very blase about it and the fact that my credit record was affected by their mistake didn't seem to resonate at all. I think that this maybe something they do alot.

I want to complain to someone about it, perhaps an ombudsman but I'm not sure who. Any advice?

Thanks

nidO

I'm not sure a complaint here will go very far, certainly in terms of your mortgage application.
From what you've said, your original mortgage application was rejected not because of affordability of the loan for having both finance agreements but because, in their eyes, you lied about your outgoings (not intentionally granted as you expected it to have been cancelled, but this was still your finance agreement and your responsibility to know whether it was still outstanding or not).

When the dealer paid off the balance, did they at least pay you back the 2 extra months' repayments on the agreement that you shouldn't have had to pay?

kickgirl

Hi
Yes I eventually got that back,again after alot of pressure from me. They really didn't seem bothered. I got that back about two weeks after the agreement was cancelled.

Gaz83

kickgirl wrote: »

In May I applied for a mortgage which was rejected. After looking at my credit report it transpired that they HAD NOT cancelled the finance and that I had in fact been paying for both cars for 2 months.

Didn't you realise?

kickgirl

Update

I complained to the FSA who agreed with me and recommended that the dealer compensate me for the inconvenience caused. The dealer has agreed..